Tether Plans U.S. Stablecoin Launch by 2025 Amid Regulatory Push
1min read Tether, the world’s largest stablecoin issuer, is planning to launch a U.S.-based dollar-pegged stablecoin as early as this year. CEO Paolo Ardoino recently disclosed this development, emphasizing that the new stablecoin would be distinct from Tether’s existing international products, including USDT. The launch timeline is contingent on the progress of pending legislation, with a potential release by the end of this year or early 2025.
Ardoino's announcement coincides with increased lobbying efforts in Washington, D.C., aimed at influencing crypto regulation. These efforts align with the GOP’s GENIUS Act, which seeks to ease U.S. operations for foreign stablecoin issuers that cooperate with law enforcement. Ardoino has been actively engaging with lawmakers, including a Capitol Hill lunch with Senator Bill hagerty and private meetings with other legislators.
Tether, headquartered in el Salvador, has a complex history with regulators. In 2021, the company settled claims with the New York attorney general by paying $18.5 million, following allegations of misleading statements about its reserves. Currently, Tether claims to hold nearly $120 billion in U.S. Treasuries, overseen by Cantor Fitzgerald. The firm's Q1 audit revealed $5.6 billion in excess reserves, a decrease from $7 billion at the end of the previous year.
The planned U.S. expansion by Tether comes at a time when other significant players are also entering the stablecoin market. Eric and Donald Trump Jr. are reportedly planning to launch their own dollar-backed stablecoin through a venture linked to their father’s political brand. This development could potentially set the stage for a domestic stablecoin arms race, further intensifying competition in the stablecoin market.
The regulatory landscape for stablecoins is also evolving. The GENIUS Act, if passed, could provide a more favorable environment for stablecoin issuers, mandating 1:1 backing and Federal Reserve oversight for large issuers. This regulatory framework could significantly impact the stablecoin market, potentially leading to increased stability and trust among users.
Tether's move to launch a U.S.-based stablecoin is a strategic response to the growing demand for stable digital assets and the evolving regulatory environment. The company's efforts to engage with lawmakers and comply with regulatory requirements demonstrate its commitment to operating within the legal framework. As the stablecoin market continues to grow, Tether's new product could play a significant role in shaping the future of digital currencies.
